What Are the Ranges of Credit Scores?
First things first: It’s important to distinguish between a FICO score and all the other versions of credit scores out there (which are completely worthless). So if you have not yet read our article explaining the differences between FICO and other credit scores, now is the time to read it!
You’ll learn that all other credit scores are total junk, so when you are looking at whether your credit score is in the range of great, good, fair, or poor, be sure you are looking at your FICO score, and not some other credit score that artificially inflates the reality of your true FICO credit score.
That said, here is an explanation of the range of credit scores, and what your score means.
|If your credit score is …||Then …|
|720 and above||You have excellent credit and will qualify for loans and interest rates reserved for borrowers in the highest echelon.|
|700 to 719||Your credit score is great, and you are considered a low-risk borrower. However, you might not qualify for the very best loans, and your interest rates might drop a little if you raised your score a few extra points.|
|660 to 699||You have fair to good credit. When the economy is doing great, you will probably qualify for a loan, and it might even be a good loan, but only if the rest of your application is strong. You definitely won’t receive the best loans or the lowest interest rates. And if the economy is weak, you might not qualify for a loan at all!|
|620 to 659||You have weak to borderline credit. The rest of your file will need to be perfect to qualify for an acceptable loan, if you qualify at all. You will pay higher interest rates, and your loan terms will be less-than-ideal.|
|620 and below||You are considered a “subprime” borrower, which means you have poor credit. Your loan terms will be far from ideal, and you probably will not qualify for a loan at all unless the economy is doing well. If you do, you will pay the highest interest rates. The lower your score, the worse your terms.|